2008 Production target increase and March production update

Production through 1st half of 2008 is now expected to be 2,200 boepd and average production for the year 2008 is expected to be 2,300 boepd compared to previous target of 2,100 boepd.

The average production for 1st Quarter 2008 was 2,150 boepd which is slightly above expectations communicated in January of 2,100 boepd.

The remaining P1+P2 reserves at 31.12.07 are estimated at 4.9 mill boe, which includes a 100% reserve replacement rate for 2007. A plan has now been recommended on how to realize optimum economic results from these reserves. Four new wells are proposed in 2008 in order to extend the current production plateau and then allow natural decline. This plan will optimise the economic outcome, and will allow Rocksource to produce the reserves with a total Finding and Development cost at less then $10.00/boe for the fields, including all acquisition costs.

Development options for the contingent resources are being considered, but no firm plans are established yet. Rocksource will continue to evaluate optimal commercial solutions for these resources. In the short term the company will prioritize production optimisation and exploration prospects which must be drilled within certain time limits to retain lease holdings.

Both oil and natural gas prices in the US remain at high levels at end March. Publicised forecasts are for prices to stay high through the first half of 2008.

Oslo, 2.4.2008
Rocksource ASA

Trygve Pedersen - CEO
+47 90 09 77 41

Published: 02.04.2008